Correlation Between Sichuan Yahua and Ingenic Semiconductor
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Ingenic Semiconductor, you can compare the effects of market volatilities on Sichuan Yahua and Ingenic Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sichuan Yahua with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Ingenic Semiconductor.
Diversification Opportunities for Sichuan Yahua and Ingenic Semiconductor
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sichuan and Ingenic is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Sichuan Yahua is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sichuan Yahua Industrial are associated (or correlated) with Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Ingenic Semiconductor
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.07 times more return on investment than Ingenic Semiconductor. However, Sichuan Yahua is 1.07 times more volatile than Ingenic Semiconductor. It trades about 0.1 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about -0.05 per unit of risk. If you would invest 1,189 in Sichuan Yahua Industrial on October 30, 2024 and sell it today you would earn a total of 127.00 from holding Sichuan Yahua Industrial or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Ingenic Semiconductor
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Ingenic Semiconductor |
Sichuan Yahua and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Ingenic Semiconductor
The main advantage of trading using opposite Sichuan Yahua and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Ingenic Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Sichuan Yahua vs. Uroica Mining Safety | Sichuan Yahua vs. Chengtun Mining Group | Sichuan Yahua vs. Guangdong Jingyi Metal | Sichuan Yahua vs. Western Metal Materials |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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